Asian Stock Market: The 5 Best International Stocks You Should Consider
With the unstable ups and downs of the US stock markets, investors are deeply looking for alternatives to not let their money waver. While most of the tech giants and huge corporations in the United States, you should try to consider other markets like Asian stock market or some international stock markets which are slowly climbing their way up.
While trades and stocks creates a connection in between countries, stock markets as well are seen as leading indicators of economic trends and investors can sense when trouble’s ahead. And amidst the US and China trade war, there is no guarantee that the US market will once again be stable anytime soon.
In fact, even the so-called Faang companies which is composed of Facebook, Apple, Amazon, Netflix and Google, whose phenomenal growth had driven stock markets to skyrocket high has experienced downfalls for the past year causing the unstable stock market situation the country is experiencing right now.
So, here are 5 international stocks you can consider if you’re planning to invest out in 2019. Guided by some of the top investors in the field, Saira Malik (Head of Global Equities, Nuveen) and Dave Eiswert (Manager of T. Rowe Price Global Stock Fund).
Some of the markets that increased involves the European market and Brazilian market, which is why Malik suggested Saint-Gobain which can also be an option by the investors from the Asian stock market.
Saint-Gobain is a French construction materials company with only 13% revenue in North America. Malik, however, clarified that Saint-Gobain’s sales mostly come from renovations and not on new constructions.
Aside from this, Saint-Gobain has extended its manufacturing and retails presence in over 67 countries. As of 2017, the corporation has earned €40.8 billion in sales and €1.63 billion in recurring net income.
ARCOS DORADOS (ARCO, +0.66%)
Arcos Dorados which literally means golden arches is considered as one of the largest employers in Latin America as it operates McDonald’s franchise in the country. While the company trades on the New York Stock Exchange, it doesn’t give its all. While McDonalds trades at 24 times earnings, Arcos trades at 16 times only.
This is believed most likely to catch up on international trades especially when the United States continues to slow down, as Malik predicted. Including in her predictions is that Arcos Dorados will expand more in South America and will double the number of its restaurants to 4,200 in 10 years.
For the third quarter of 2018, Arcos’ net income increased by 68% to $42.7 million from $25.3 million in the third quarter of 2017.
Dave Eiswert on the other hand suggested three international stocks to invest on, and one of them is Essity. Essity is a Swedish maker of products like diapers and toilet tissues based in Stockholm, Sweden. And as Eiswert predicts, there will be a dramatic increase in earnings of about 12% to 15% as the growth falters and the costs comes down for this company.
True to his words, Essity has shown a net sales increase of 9.1% for the third quarter of 2018 amounting to SEK 1.41 per share. And on the third-quarter as well, they have launched a Group-wide cost-savings program wherein the annual cost savings amounted to approximately SEK 900m.
AIRBUS (EADSY, +3.81%)
While Airbus makes it way on air, the French based aerospace company is still on close fight with Boeing, which is America’s biggest manufacturing exporter in the same field. And while Boeing has been booming at a rate of 21% over the past three years, Airbus also trades at 15% discount.
As Eiswert explained, Airbus is like Boeing 2.0. Considering the low-growth world, people still fly in airplanes which makes Airbus still run against its competitor. Plus, Airbus is a safer option as Boeing is based in America, although it hasn’t shown any signs of market depreciation.
Airbus also released its financial report for the first quarter of 2018, with a net income of € 283 million with earnings per share of f € 0.37. Its consolidated net cash position as of March 2018 was € 9.8 billion with a gross cash position of € 20.9 billion.
ITAÚ UNIBANCO (ITUB, +2.14%) AND LOJAS RENNER (LRENY)
Itaú Unibanco and Lojas Renner are individually famous department store chains with an e-commerce business that Eiswert likens to GAP. Both department stores are based in Brazil, wherein Eiswert has spent his time loading stocks for the past few months.
Despite the controversies of the newly elected president, Jair Bolsonaro, Eiswert thinks that the elected president is at least good with business, that is why he invested on the country’s department stores. And as Eiswert further explained, “Brazil is very, very much off cycle to the rest of the world”, which means that when the sun sets on the bull market, the off-cycle place will be a good choice to visit.
It’s always good to have options, and for business investors they always keep an eye on these things and these five are the top rising companies based from the opinions of the experts.
And if you’re new in this industry but still would want to give it a try, you should remember to set long-term goals, as this is not an easy game where you can withdraw your money anytime you want. Or if you do, you will not earn anything from it. Investment takes time, it even takes years of patience and waiting. Another good tip would be to control your emotions, as the stock market changes its pace and leads in a snap, you still got to make logical decisions.
Of course, before diving in the vast sea of numbers, make sure you get your knowledge straight. Things like the financial metrics and definitions, popular methods of stock selection and timing, stock market order types and different types of investment accounts.
For sure, there are a lot of companies available, but their existence and sales is better be real for you to be able to reap your investment in the future.